Arizona Insurance Law & Code
Beyond getting licensed, Arizona producers must know the substantive rules that protect policyholders. This chapter covers the state insurance code and the department's rule-making authority, required policy protections such as the free-look right, replacement rules, and the Arizona Life and Health Insurance Guaranty Association. These are state-specific overlays on the national policy provisions.
The Arizona Insurance Code and Department Rules
The Arizona insurance code is the body of statutes governing insurers, producers, policies, and market conduct in the state, and the department adopts administrative rules to implement it. Different parts of the code address licensing, required policy provisions, unfair trade practices, and claims handling. Knowing that the code and the department's rules together control what a producer may and may not do is foundational.
Policyholder Protections and Required Provisions
Arizona requires certain protections in individual policies. A key example is the free-look (right-to-examine) provision, which gives the policyowner a set period after delivery — commonly at least 10 days for individual life — to return the policy for a full premium refund; replacement and senior sales often carry longer periods. The state also regulates grace periods, required disclosures, and policy language so consumers understand what they buy. Replacement regulations require producers to give applicants replacement notices and to notify the insurers involved.
The Arizona Life and Health Insurance Guaranty Association
The Arizona Life and Health Insurance Guaranty Association pays certain covered claims of policyholders when a member insurer becomes insolvent, subject to statutory dollar limits that vary by benefit type (for example, death benefits, cash value, and annuity values). Importantly, Arizona law prohibits producers and insurers from using the existence of the association as an inducement to buy insurance or in advertising; it is a backstop, not a selling point.
Keep going: the full Arizona Life & Health Insurance Producer Exam guide covers every section of the exam. Arizona Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Arizona Department of Insurance and Financial Institutions
- Exam vendor
- PSI
- Passing score
- 70%
Who regulates life & health insurance licensing in Arizona?
The Arizona Department of Insurance and Financial Institutions (DIFI) licenses producers. As of September 2025, PSI Services replaced Pearson VUE as Arizona's licensing-exam vendor, so candidates now register through PSI.
How is the Arizona life & health exam administered?
The Life, Accident and Health or Sickness exam is delivered by PSI Services on behalf of DIFI, and a minimum score of 70% is required to pass.
Does Arizona require prelicensing education for the life & health exam?
Arizona's prelicensing requirement has been the subject of recent changes; confirm the current requirement directly with DIFI before enrolling in a course.
Sources: https://difi.az.gov, https://www.psiexams.com/
In the Arizona Life & Health Insurance Producer Exam guide: A KEY CONCEPT box, a Common Traps list and a Check Yourself set closing each of the 9 national chapters. Practice here stays free.